If the Government Has a Budget Deficit, Crowding Out Might

question 200

Multiple Choice

If the government has a budget deficit, crowding out might occur. Crowding out leads to all of the following EXCEPT

• A) a higher real interest rate.
• B) a decreased quantity of investment.
• C) a smaller capital stock in the future.
• D) decreased private saving.

---

Definitions:

Organization

A structured group of people working together towards common goals, characterized by a system of roles, rules, and relationships.

Business Competition

The rivalry among companies striving for greater sales, market share, and customer loyalty within the same market.

Unethical Behaviour

Actions that violate moral principles or professional standards, often causing harm to others or to the organization itself.

Organizations

Entities comprising multiple people working together toward a common goal, structured to coordinate their activities and resources efficiently.